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This would blow a big hole in my RE plans
Old 06-24-2009, 04:27 PM   #1
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This would blow a big hole in my RE plans

I do not want to read about bad news. Please, can someone read this article and tell me this is just a joke?

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Men retiring at age 65 in 2009 will need from $68,000 to $173,000 in savings to cover health-insurance premiums and out-of-pocket expenses in retirement if they want a 50/50 chance of being able to have enough money, and $134,000 to $378,000 if they prefer a 90% chance, according to a study published last week by the Employee Benefits Research Institute.

Meanwhile, women -- with their greater longevity -- will need even more money. A women retiring at age 65 in 2009 will need from $98,000 to $242,000 in savings to cover insurance premiums and out-of-pocket expenses in retirement for a 50/50 chance of having enough money, and $164,000 to $450,000 for a 90% chance, said Paul Fronstin, an EBRI researcher, in the report.
retirees-may-well-worry-health-care-reform.html: Personal Finance News from Yahoo! Finance
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Old 06-24-2009, 04:29 PM   #2
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I do not want to read about bad news. Please, can someone read this article and tell me this is just a joke?
I wouldn't worry about it. You'll be dead long before anyone wastes that kind of money on your medical care. Or mine.
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Old 06-24-2009, 04:55 PM   #3
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Old 06-24-2009, 05:36 PM   #4
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1993 - 2005, no insurance a bad attitude and an up to date American Passport.

Not recommended but I suspect medical tourism, and or no insurance shall continue to rise.

At age 65 - a relatively inexpensive state(and no pre-existing conditions) helps.

Still $178/mo ain't chump change.

heh heh heh - I don't expect to hear any solutions in the future.
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Old 06-24-2009, 05:52 PM   #5
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I do not want to read about bad news. Please, can someone read this article and tell me this is just a joke?


retirees-may-well-worry-health-care-reform.html: Personal Finance News from Yahoo! Finance
MIL, 66, spends about $6,200 a year on health care (including out-of-pocket expenses and premiums) and she is in relatively good health. If she lives another 30 years, that's $186,000 she will need to continue covering those expenses (assuming that those $186K can keep up with health care costs inflation). Of course, it's probably an underestimation. It doesn't even include the potential costs associated with a serious illness or the costs of long term care...

But why worry? She doesn't even have the $186K now...
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Old 06-24-2009, 06:56 PM   #6
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MIL, 66, spends about $6,200 a year on health care (including out-of-pocket expenses and premiums) and she is in relatively good health. If she lives another 30 years, that's $186,000 she will need to continue covering those expenses (assuming that those $186K can keep up with health care costs inflation). Of course, it's probably an underestimation. It doesn't even include the potential costs associated with a serious illness or the costs of long term care...

But why worry? She doesn't even have the $186K now...

This seems realistic to me. With medicare part B & D premiums, a medigap policy, deductibles and co-pays 5K per year is a best case for me. And don't forget dental and vision costs. Root canal and a crown 2 to 3K.

If this kills your retirement you better keep working.
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Old 06-24-2009, 07:11 PM   #7
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I wouldn't worry about it. You'll be dead long before anyone wastes that kind of money on your medical care. Or mine.
We are doomed!

The only question in my mind is whether one would die a quick merciful death, or a prolonged one in agony.
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Old 06-24-2009, 08:41 PM   #8
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Well, $134,000 divided by 25 is $5,360 a year. So using the 4% guide (same as 25x), you would need that much to cover $5,360 in premiums. $5,360 is in the ballpark for premiums. That assumes ins = CPI, which it has exceeded for a long time (but may revert to the mean, or not).

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Old 06-26-2009, 12:14 AM   #9
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Why is this surprising?

I've always figured $250,000 apart from my retirement savings for healthcare costs. Admittedly, I'm in fair-to-poor nick, what with diabetes and all. But, increasingly I'm becoming convinced that eventually the gov't will begin cutting Medicare benefits and S.S. payouts; there's just not enough $ available in our demographically-challenged future economy to cover Boomers like me.

Initially I thought I could retire at 65 or so with $750,000 or so; current plan is, work 'til I have $1,300,000 or so.

Only a million to go!
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Old 06-26-2009, 05:46 AM   #10
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I fear that medicare will become means tested in which case my medical expenses post 65 will be higher than that.
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Old 06-26-2009, 08:26 AM   #11
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I fear that medicare will become means tested in which case my medical expenses post 65 will be higher than that.
If they only soak "the rich", I should be ok...
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Old 06-26-2009, 10:10 AM   #12
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Mickey, do you have any sort of military health care benefits? That's a CIB in your avatar, right?
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Old 06-26-2009, 03:29 PM   #13
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Mickey, do you have any sort of military health care benefits? That's a CIB in your avatar, right?
Yea, but when I turn 65 in Nov medicare become primary and TFL secondary.
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Old 06-27-2009, 03:23 PM   #14
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Reality bites! My wife and I pay ~ 1300/mo for medical insurance alone through our former company's retirement plan (and they kick in some on top of that.) No dental included. It is our single largest monthly expense by far.
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Old 06-29-2009, 09:13 AM   #15
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I'll get some sort of Tricare at age 60, TFL at 65 also. I hope that will keep some of the costs down. But, I don't get anything until age 60 (2026) and a lot can change before then. Heck, we may have universal health insurance by then.
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